Rate rise fears alter lending habits

Concerns that interest rates are due to rise leaves many people looking to avoid being vulnerable to heightened debt management pressure, figures from the Council of Mortgage Lenders (CML) have suggested.

Fears over potential debt management issues have helped push the total percentage of first-time buyers opting for deals not affected by interest rate alterations up to 87 per cent, according to the CML.

Director general of the CML Michael Coogan commented: “With the chance of at least one more interest rate rise this year, first-time buyers are taking the sensible option of taking out fixed-rate deals, and locking into the payment security they provide.”

Last week, the Bank of England opted not to increase the pressure on the millions of Brits looking for a debt solution by maintaining the base rate of interest at 5.25 per cent.

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ClearDebt proposes and administers Individual Voluntary Arrangements (IVAs). We only provide advice on the basis that there is reasonable contemplation of an insolvency appointment, once it is apparent that an IVA is likely to be the most appropriate debt solution.